Financial Inclusion and Market Capitalisation of Listed Deposit Money Banks in Nigeria.

Purpose: Financial inclusion has become a major policy priority for expanding access to financial services and promoting financial sector development. However, evidence on whether financial inclusion enhances market-based measures of firm value remains limited, particularly in emerging banking markets. This study examined the effect of financial inclusion on the market capitalization of listed Deposit Money Banks (DMBs) in Nigeria. Specifically, the study investigated the influence of deposit mobilisation, credit accessibility, and bank size on market capitalization.
Methodology: The study adopted an ex post facto research design and utilized secondary data obtained from the annual reports and accounts of nine listed Deposit Money Banks in Nigeria for the period 2015–2025. Guided by Financial Intermediation Theory, Signaling Theory, and Financial Deepening Theory, data were analysed using descriptive statistics, correlation analysis, and fixed-effects panel regression techniques.
Findings: The findings revealed that deposit mobilisation was found to have a positive but statistically insignificant effect on market capitalization while credit accessibility exhibited a negative and statistically insignificant effect. In contrast, bank size demonstrated a positive and statistically significant effect on market capitalization. The findings suggest that financial inclusion alone does not automatically translate into higher market value and that investors place greater emphasis on institutional strength, operational capacity, and financial resilience than on financial inclusion activities alone.
Unique Contribution to Theory, Practice and Policy: This study extends the financial inclusion literature by examining its effect on a market-based measure of firm value rather than conventional accounting-based performance indicators. The findings challenge the assumption that financial inclusion automatically enhances shareholder value and demonstrate that its benefits depend on efficient resource allocation, prudent risk management and strong institutional capacity. The study recommends that banks strengthen deposit utilization strategies, maintain prudent lending practices and pursue sustainable growth strategies that enhance investor confidence and long-term market value.

Financial Inclusion, Deposit Mobilisation, Credit Accessibility, Bank Size, Market Capitalization, Deposit Money Banks, Nigeria.

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